In a surprising twist for one of the fastest-growing sectors in the U.S. economy, the cannabis industry lost jobs in 2023—despite setting a new national record in sales. According to a new report from industry analysts at Vangst and Whitney Economics, the legal marijuana market brought in over $28.8 billion in revenue last year, but still saw a net decrease of roughly 10,000 full-time jobs.
This marks the first time the legal cannabis workforce has shrunk since the industry’s early days of state-level legalization. In 2022, cannabis jobs peaked at around 417,000. By the end of 2023, that number had dropped to about 417,493—still substantial, but signaling a change in momentum.
Experts say the job losses stem from a mix of issues: oversaturated markets, heavy taxation (especially Section 280E at the federal level), and uneven rollout of licensing in states like California and New York. These factors have caused many small businesses to close or consolidate, even as consumer demand continues to grow.
Some states with newly launched recreational markets, like Missouri and Maryland, saw job growth. But those gains were offset by layoffs and business failures in more mature markets where price compression and regulatory burdens have made profitability increasingly difficult.
Ironically, this contraction comes at a time when cannabis sales are booming. Nationwide adult-use and medical marijuana purchases soared past previous years, fueled by expanding access and changing public attitudes. But as the industry matures, simply selling more product is no longer enough to guarantee job growth.
Industry leaders are calling for federal reform—especially the removal of 280E tax penalties—as a way to stabilize the sector and unlock job creation. Without policy changes, they warn, more businesses will continue to struggle, even as sales climb.
Despite the workforce dip, analysts remain optimistic about long-term prospects. Legalization momentum continues to spread, and many expect job numbers to rebound as regulatory frameworks improve and federal barriers fall.
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